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Published On: Thu, Apr 29th, 2021

Agribank remodels, Mnangagwa expected to officiate relaunch

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By Nyasha Chuma

President Emmerson Mnangagwa is expected to officiate at the official relaunch of Agribank  (Pvt) Limited on Friday, where it is being remodeled into a land bank to support the country’s Agriculture Recovery Plan, Zim Morning Post can report.
The development to restructure the group was approved by Cabinet last year with view of ensuring food self-sufficiency for the country.

“Cabinet considered and approved the proposed remodelling  of  Agribank  (Pvt) Limited. This is in view of the fact that agriculture, among other productive sectors, is crucial in realising Vision 2030 owing to its contribution to the economy and to national security. Cabinet noted that the establishment of vibrant and diversified rural financial services which are underwritten by a Land Bank or its equivalent will be an important step which the country should take in order to move towards upper middle income status. This is in view of the realisation that smallholder farmers comprising Communal, Old Resettlement, Small-Scale Commercial and A1 farmers constitute 99 percent of the farming population, holding up to 95 percent of the productive land and owning over 90 percent of the national livestock herd, “said Information minister Monica Mutsvangwa.

She added :
“Cabinet was informed that the remodeling of Agribank Pvt Limited as a dedicated Land Bank is expected to deliver a number of specific outputs. It will strengthen and diversify existing agricultural and rural financial services for sustainable agrarian reform for accelerated development.  The bank will also provide investment support for A1, A2 and small scale commercial farmers (matenganyika) who have not been supported by commercial banks.

“It will link currently under-utilised land to structured markets and established value chains supplying factories, supermarkets and export markets and also  provide working capital for the construction of agricultural infrastructure as well as for value addition and beneficiation enterprises. “

Zim Morning Post understands that the financial institution intends to mobilize private sector finance in order to contribute to job creation, food security and social protection in rural communities.

The remodeling will be in line with the mandate of the Agricultural Finance Corporation which has used to offer farmers short, medium and long-term loans.
Meanwhile, the institution ‘s head office in Harare has been cordoned off and vendors have been evacuated.
The group consists of the commercial bank, Land bank, Insurance and Leasing entity.

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Agribank remodels, Mnangagwa expected to officiate relaunch